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Posted on Jul 10, 2024

Question 10 of 23 To answer this question, value Graham Holdings as of December 31, 2016 using all the data provided in the previous 2

Question 10 of 23 To answer this question, value Graham Holdings as of December 31, 2016 using all the data provided in the previous 2 questions (Files: GHC Free Cashflow Data, GHC Assumptions) assuming all cash flows come at year end. Assume a WACC of 8.00%. Question: What is the equity value using the FCFF (unlevered DCF) approach? Use exact dates and assume calendar year (January 1-December 31) and an ACTUAL/ACTUAL month/year basis. 3,273,512.2 O 3,721,753.2 4,079,691.2 4,527.932.2 5,983,730.9 Question 11 of 23 (Files: GHC Free Cashflow Data, GHC Assumptions) Continuing our GHC exercise, calculate 2016 EBITDA multiple implied by the DCF. O 9.4x 9.8% 10.3x 13.0x 15.1x AT Free cash flow buildup 1 Free cash flow buildup 12/31/2014 12/31/2015 12/31/2016 3 Fiscal year end date 4 Select Income Statement Data 5 Reve 6 COCS, SG&A and other operating expenses 7 Interest income Interest expense No recurring non-operating income (expense) 10 Provhion for Income Taxes 11 m 1) Depreciation & amortization (included in COGS, SO&A and other operating expenses) 2,737,032.00 2.501,312.00 2.136 35,533 7TH.010 3120000 2.586,114.00 2.666.939.00 1.909.00 32,654.00 -8.623.00 20.500.00 2.481,890.00 2.178.156.00 3,093.00 35.390.00 -12.64 200 31.200.00 219.15700 428,43700 92.894.00 14 Fiscal Year endale 15 Cash and equivalents 16 Investments in marketable equity securities 17 Working capitales 18 Intangible assets (including goodwill 12/31/2015 774.952.00 379.445.00 706,325.00 1.146,589.00 12/31/2016 670.816.00 448.241.00 752.259.00 1.296.919.00 14 Fiscal year end date 15 Cash and equivalents 6 Investments in marketable equity securities 7 Working capital assets Intangible assets (including goodwill) 12/31/2015 774.952.00 379.445.00 706,325.00 1.146.589.00 231.123.00 12/31/2016 670.816.00 448.241.00 752.289.00 1.296,919.00 233.661.00 19 PPE 0 1 Working capital liabilities Current portion of long-term debt Long-Term Debt 928.429.00 0 399.800.00 1.008,743.00 6,128.00 185,719.00 12/31/2015 12/31/2016 Fiscal year end date Cash flows from investig activities Capital expenditures and purchases of intangible assets Common dividends 237.29200 68,114.00 136,859.00 53,721.00 66.612.00 27,325.00 Question 10 of 23 To answer this question, value Graham Holdings as of December 31, 2016 using all the data provided in the previous 2 questions (Files: GHC Free Cashflow Data, GHC Assumptions) assuming all cash flows come at year end. Assume a WACC of 8.00%. Question: What is the equity value using the FCFF (unlevered DCF) approach? Use exact dates and assume calendar year (January 1-December 31) and an ACTUAL/ACTUAL month/year basis. 3,273,512.2 O 3,721,753.2 4,079,691.2 4,527.932.2 5,983,730.9 Question 11 of 23 (Files: GHC Free Cashflow Data, GHC Assumptions) Continuing our GHC exercise, calculate 2016 EBITDA multiple implied by the DCF. O 9.4x 9.8% 10.3x 13.0x 15.1x AT Free cash flow buildup 1 Free cash flow buildup 12/31/2014 12/31/2015 12/31/2016 3 Fiscal year end date 4 Select Income Statement Data 5 Reve 6 COCS, SG&A and other operating expenses 7 Interest income Interest expense No recurring non-operating income (expense) 10 Provhion for Income Taxes 11 m 1) Depreciation & amortization (included in COGS, SO&A and other operating expenses) 2,737,032.00 2.501,312.00 2.136 35,533 7TH.010 3120000 2.586,114.00 2.666.939.00 1.909.00 32,654.00 -8.623.00 20.500.00 2.481,890.00 2.178.156.00 3,093.00 35.390.00 -12.64 200 31.200.00 219.15700 428,43700 92.894.00 14 Fiscal Year endale 15 Cash and equivalents 16 Investments in marketable equity securities 17 Working capitales 18 Intangible assets (including goodwill 12/31/2015 774.952.00 379.445.00 706,325.00 1.146,589.00 12/31/2016 670.816.00 448.241.00 752.259.00 1.296.919.00 14 Fiscal year end date 15 Cash and equivalents 6 Investments in marketable equity securities 7 Working capital assets Intangible assets (including goodwill) 12/31/2015 774.952.00 379.445.00 706,325.00 1.146.589.00 231.123.00 12/31/2016 670.816.00 448.241.00 752.289.00 1.296,919.00 233.661.00 19 PPE 0 1 Working capital liabilities Current portion of long-term debt Long-Term Debt 928.429.00 0 399.800.00 1.008,743.00 6,128.00 185,719.00 12/31/2015 12/31/2016 Fiscal year end date Cash flows from investig activities Capital expenditures and purchases of intangible assets Common dividends 237.29200 68,114.00 136,859.00 53,721.00 66.612.00 27,325.00